Insurance Application Tip 1: Avoid Self-Diagnosis


Insurance Application Tip

I know that you will want to be honest on your application for insurance, however it is important to remember that anything you say on your application can be used as a justification for an underwriter to make an adverse decision.

It is one thing to say, “My knee hurts when it rains.”  It is entirely different to say, “I have arthritis in my knee.”

:-) MY KNEE HURTS

With the first statement you are alerting the insurance company that there is a potential problem.  Give them your doctor’s contact information.  If they want to pursue it, they should contact your doctor.

:-(  I HAVE ARTHRITIS

With the second statement, you admit to an official diagnosis but have not said what type of arthritis you have, what treatment you need or what level of control you have over the problems.  All of those things will determine if your policy is approved and at what premium level.

CORRECTING A PROBLEM

If you made a mistake on an insurance application, it can be corrected through appeal but the appeals process is expensive, lengthy and frustrating.  During it you run the risk of having no insurance.  Even if you keep your prior insurance, if something new is diagnosed while you are waiting for your appeal, the insurance company can use that new condition as a reason to take adverse action.  It is better to avoid all these problems by avoiding self-diagnosis in the first place.

Tim Barnes, CLU has been working with Life and Health insurance for 25 years.  If you have no local insurance agent who you trust to help you obtain the insurance you want, use the contact form in the right side-bar to let him know that you want him to contact you.

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